Property protection insurance
Every Michigan no-fault policy includes property protection insurance (PPI). Under MCL 500.3121, it pays for accidental damage to tangible property arising from the ownership, operation, maintenance or use of a motor vehicle, without regard to fault.
- What it pays: the lesser of reasonable repair costs or replacement cost less depreciation, plus loss of use where applicable
- Limit: $1 million for all property damage from one accident under one policy
- Where: crashes in Michigan only
Typical claims are a car through a storefront, a house, a fence, a utility pole, landscaping, or a car that was properly parked.
What it does not cover
MCL 500.3123 excludes:
- Vehicles and their contents, unless the vehicle was parked in a way that did not cause an unreasonable risk of the damage
- Property owned by the vehicle’s owner, registrant or operator, or their spouse or resident relatives
- Damage from crashes outside Michigan
Damage to moving vehicles is handled through collision coverage and the mini tort, not PPI.
Which insurer pays
Under MCL 500.3125, the property owner claims first against the insurers of the owners or registrants of the vehicles involved, then the insurers of the operators. If your home was hit, you claim against the driver’s auto insurer, not your homeowner’s policy, although your homeowner’s insurer may pay and seek reimbursement.
One year from the accident. A lawsuit for property protection benefits must be filed within one year after the accident (MCL 500.3145(5)). There is no one-year-back extension for PPI.
Damage to your own car: the mini tort
Property protection does not pay for damage to moving cars. Your collision coverage pays for your own car, and if the other driver was more than 50% at fault you can recover up to $3,000 of what it does not cover. See the Michigan mini tort: who qualifies, how to file and a sample demand letter.
Sources: MCL 500.3121; MCL 500.3123; MCL 500.3125; MCL 500.3135(3)(e); MCL 500.3145(5).
Questions people ask us
Who pays to fix my car after a Michigan crash?
Your own collision coverage, if you have it. Michigan property protection insurance does not cover moving vehicles. If the other driver was more than 50% at fault, you can recover up to $3,000 of what your insurance does not pay, such as your deductible, through a mini-tort claim.
What does property protection insurance cover?
Damage your vehicle causes in Michigan to other people’s property, such as buildings, fences, mailboxes and properly parked cars. It pays up to $1 million per accident, regardless of fault.
